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Writting Of Options

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  #1  
Old 21st March 2007, 09:25 PM
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Default Writting Of Options

Let Me Ask Something To Our Sr. Members

If One Writes Out Of The Money Call/put Option & That Remains Out Of The Money On Exercise Day Then I Think Whole Amt. Of Premium Received Will Remain With The Writer , Right???

Ex. If One Writes Today Say 4300call Option , If On Expiry Date Suppose Mkt Goes To 4250 Then Also , As Call Is Out Of The Money , So Premium Will Remail With The Writer, Right???
Or If One Writes 3400put Option & If Mkt Goes To 3450 On Expiry Date Then Also As It Is Out Of Money So Premium Will Remail With The Writer, Right???


This All Asked Not As Any Tips But To Getting The Confirmation.
Please Donot Delete It Traderji,
& I Request All Sr. To Give Me Confirmation To My Knowledge


Looking Forwordddd



Kedar
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  #2  
Old 21st March 2007, 10:03 PM
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Default Re: Writting Of Options

Quote:
Originally Posted by kedarvb View Post
Let Me Ask Something To Our Sr. Members

If One Writes Out Of The Money Call/put Option & That Remains Out Of The Money On Exercise Day Then I Think Whole Amt. Of Premium Received Will Remain With The Writer , Right???

Ex. If One Writes Today Say 4300call Option , If On Expiry Date Suppose Mkt Goes To 4250 Then Also , As Call Is Out Of The Money , So Premium Will Remail With The Writer, Right???
Or If One Writes 3400put Option & If Mkt Goes To 3450 On Expiry Date Then Also As It Is Out Of Money So Premium Will Remail With The Writer, Right???


This All Asked Not As Any Tips But To Getting The Confirmation.
Please Donot Delete It Traderji,
& I Request All Sr. To Give Me Confirmation To My Knowledge


Looking Forwordddd



Kedar
thats absolutely ryt. it remains wid u but u always run the high risk of gettin into an obligation to pay in case ur call goes ITM.


thanks
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  #3  
Old 22nd March 2007, 04:06 PM
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Lightbulb Re: Writting Of Options

Quote:
Originally Posted by swagat86 View Post
thats absolutely ryt. it remains wid u but u always run the high risk of gettin into an obligation to pay in case ur call goes ITM.


thanks
Thanks, Swagat
for ur reply & attentation.



kedar
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